Shop Rates

How To : Manufacturing Hourly Rate Calculation

Sheet metal, CNC shops, machine shops and many other job shops provide a valuable service to their customers.  For a job shop to be a profitable business, the service rate should cover the cost of doing business plus have a certain amount of margin or profit built into the price customers pay. If this is too low,…

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Manufacturing Efficiency in Estimating

How many of you have estimated a job and wonder how anyone could do it any cheaper and make money?  Well your not alone in your thinking.   There are manufacturers that are using reverse auctions in order to try to get more work and pick up new customers.   The problem is when you…

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Fabrication Workcenter Overhead Rates

When you quote a job and its operations you need to make sure you quote it accurately. Its very important to know that when you quote a job that your rates are high enough to actually turn a profit. [polldaddy poll=2007715] Welcome to the MIE Solutions Job Shop Estimating blog. Fabrication software as in sheet…

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Machine Shop Rates Part 2

Welcome to the MIE Solutions Job Shop Estimating  blog.   Fabrication software as in sheet metal software and manufacturing software deals with shop rates extensively for costing. There are basically 3 ways to calculate overhead absorption rates which is used to provide your shop sell rate during quoting and estimating. Company Overhead Absorption Rate Percentage…

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Machine Shop Rates Part 1

Welcome to the MIE Solutions Job Shop Estimating  blog. MIE Solutions ERP system provides a comprehensive job shop software to deal with the many problems issues a job shop encounters.  Estimating has become a critical factor in many job shops in order to determine the best price for custom and made to order manufactured parts.…

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Standard Shop Rate

Do you remember when it was time to quote and you sat down with your specifications, pencil and paper and started to write down how long each processes would take to manufacture the given specifications.   You would add up all the setup time, then go through and add up all the cycle time per…

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Introduction To Shop Rates

Labor used to produce products and services purchased by customers. These man-hours are directly attributable to customer activity. Lab A few years ago before computers, excel spreadsheets and calculators most organization used a standard shop rate for any labor that was occuring during a process.   Now that computers can easily calculate figures organizations have…

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